The Russian economy goes from bad to worse. Treasury now expects a decline in gross domestic product in 2009 to 2.2 percent. From an earlier forecast of 0.2 percent. in negative growth. It says Russia’s Deputy Economics Minister Andrei Klepach, according to Bloomberg News.

Had high hopes

In the autumn forecast was positive, with different expectations of up to 6 percent. in growth in 2009, but has only gone one way – downwards. Eventhough Russia fare from is hte only large economy in the world, that is experiencing the crisis coming closer, it is extra tough on this fragile economy

Rubel weakened to the euro

The course of the rubel followed in the same direction with a huge weakness against the euro. At three months the price of one euro rose from 33.5 rubles to 45.7 rubles currently equivalent to a weakening of the ruble at 36.4 percent.

State investments

The change in estimate on gross domestic product is among others due to industrial investment has declined over surprisingly large force in an environment of deteriorating credit conditions and a lower level of state investment, says Andrei Klepach.